Digital Marketing Business Plan Analysis

The provided assignment is a detailed analysis of a company's digital marketing business plan. The report examines how environmental factors affect the digital market and the online business of the firms, as well as how the company deals with those factors to overcome its growth in the business. It also compares the traditional stores' presence and digital presence of the company, differentiating between them in terms of profits and sales revenue and growth. The report concludes by discussing various evaluation methods to measure and monitor the effectiveness of the business plan and its activities.

Digital
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Swot analysis of L’oreal.............................................................................................................3
High quality product...................................................................................................................4
Pestle analysis.............................................................................................................................6
Task 2...............................................................................................................................................7
Comparison of Digital Presence and Store presence of L'oreal..................................................7
Task 3.............................................................................................................................................10
Business Plan............................................................................................................................10
Task 4.............................................................................................................................................14
Methods used to evaluate the effectiveness of the above plan to the business.........................14
Conclusion ....................................................................................................................................16
References .....................................................................................................................................17

INTRODUCTION
Digital marketing is help to company for marketing of product by the use of new
technology commonly through internet but also used mobile phones, laptops. Display
advertising, and many more other digital medium. In this report for better understanding of
digital marketing, L'oreal is taken. L'oreal is a world largest beauty and cosmetic product
company. That provide the variety of product Such as hair colour, skin care, make up, perfume
etc. This report will emphasise the swot analysis of the L'oreal and also describe the pestle
analysis. Basically as per the present case study where the L'oreal consumers are highly engaged
with online products. With more than 38% of its media invested into digital platform. Companies
in the beauty industry compete to have best product along with the best passing message. On the
same side, study further also explains how much digitalisation influenced the cosmetic industry
and how can helpful to creating a long term relationships with brands and their consumers. The
main purpose of the study is to explore the more opportunities for L'oreal to make the best
services for the buyers.
TASK 1
Swot analysis of L’oreal
Challenges & Opportunities
Opportunities
Provide organic product
L’oreal should provide the organic product to their customer. Because right now the
demand of natural product is high because customer want the natural product that cannot affect
and harm the body. So L’oreal should more focus on provide the organic or chemical less
product. This can be the opportunity for the company that helps them to develop the high
potential goals and services to make and better understanding to the market threats and
environment.
Expand the market
L’oreal expand their market in different locations. L’oreal is focus on the personal care
sector that provide the health benefit to the Customer and also provide high quality and branded
product to the customer. L’oreal is also focused on curly hair and darker skin tones that easily
competing with their rivals and increase their profits. Market expansion can be the another

opportunity for the cosmetic industry which explores the company growth. New expansion
somehow change the digital marketing activities which can helpful to make the best
understanding decision making approach.
High quality product
L’oreal provide the high quality product to their customer. Customer who want expensive
product plus branded product L’oreal has provided highly branded product to those customers
who prefer the luxury product. They use the high quality ingredients in their product that doesn't
harm skin of the customer.
In terms of digitalisation high quality products can help to engage the high popularity
growth for the L'oreal. Its might be given good impact on the company market share as well.
Research and development
Company is more focus on the research and development because L’oreal is provided the
variety of product according to the different preference of customer. So L’oreal is continued
doing the research and development to improve the quality of product (Key, 2017). Because
customer want the organic produce that cannot affect their body. So company research and
making the best product to satisfy customer. This department can help to analyse the new
opportunities in the market through company can get benefited for long time. However, the new
business positioning helpful to make better understand the things more clearly defined.
Sustainable development : Sustainable environment is the another revolution term which often
used to describe broad technological change. Also, it helps to becoming increasingly clear that
digital changes are a driving force of societal transformation.
Zero cost for inclusion : This is the another opportunity for the L'oreal which is beneficial in
terms of cost savings, knowledge transfer, team culture building. Zero cost screen and slot
machines.
Smart screens and slot machines : Smart screens and slot machines resist checking a buzzing
mobile devices. Smart screens and slot machines are promoting workplace technology which
helps to increase the productivity performances and goals.
Challenges
Product diversification
L'oreal face some competition disadvantage in the variety of product. For example in the
market many products are available in hair care segment such as curly hair, strait hair, blonds

hair. Other company has provided the specific product like sun silk and head and shoulder are
only provide the hair care products so it is affect the L’oreal and increase the competition.
Product diversification can be the threat for the company because of high competition.
Many other international brand has already selling products online. Due to which new product
diversification can not be the good option for company.
Change customer taste
L’oreal is facing the problem of change the customer taste because in the market there are
many competitors and they provide the different variety and different price of product. So
customer are easily changed the taste and change the product according to their leaving style and
trend of fashion (Tuten and Solomon, 2017). Due to changes customer rate it might can impact
the growth of digitalisation transaction which occurred high cost to the company.
Increase competition in the market
L’oreal face the competition in the beauty and cosmetic market. Many competitors are
more focus in their specific product for example Head and shoulder is concern for hair. So this is
the big disadvantage of the L’oreal because L’oreal is provided the variety of product they
cannot take proper attention in the one product. So company face the competition in the market
(Järvinen, and Taiminen, 2016).
Pestle analysis
Political factor
Political factor is describe the rules and regulation of the government so company must follow
the rules. L’oreal manufacturing and registered office in Paris and there headquarter in France so
government rulers and regulation is affect the L’oreal For example tax policies, interest rates
these all are affect negative to L’oreal that increase the cost of production. L’oreal is the biggest
cosmetic company they enter in Asian market. Also, it has been meet the demand of the
customer in Asian market. So that is created the positive impact on the company. Because
L’oreal is expanded their business in Asian market. Somehow to build a digital platform is
difficult challenge for the companies in new places or destinations. Therefore, growth or success
of digitalisation is depends on the country political condition and the rate of the services.
Economical factor

Economical factor is include the different exchange rates, economy growth, interest rates,
employment rates. L’oreal has entered in develop economy and high human development index
is create positive impact on the L’oreal. Because the customer of developed country has more
interested to purchase the branded product. L’oreal has faced the difficulties in the financial
crises because company reduce the profits due to decrease the demand of their products (Baltes,
L.P. 2015). Good economic stability always provoke to new transformation which is helpful for
the brands or the organisation. For more economic stability digitalisation is very competitive and
beneficial which highly gives the good rate of return to the companies. Apart from that, it
basically follows the high influencing business goals and make the study more reliable.
Social factor
Social factor is include the different norms and attributes of the population. L’oreal have
provided the branded and innovative product to their customer. The customer who have
understood about the fashion and new technology they will easily by the product and increase the
demand of the product that create a positive impact on the L’oreal. L’oreal has faced the
problem related to their product. Because customer want the organic and natural product but
L’oreal cannot afford the natural ingredients because it is very expensive so customer are not
satisfied with the quality. So that is created the negative impact on the business(Kannan, 2017).
Social factor creates opportunity for the digital platform through purchasing online services and
products from the market. Besides, it also helps to discover new ideas in order to generate the
high professional goals and objectives. Dynamic pricing based on availability and quantity is
now used by most of the companies. Social factor can also be challenging task for the brands in
terms of less security in digital transactions or possibilities of data hackers.
Technological factor
Technological factor is describe the innovation and technology use by the company that help to
increase the growth of the company. L’oreal use the different technology to create new product
to the customer and increase demand of the product. Recently L’oreal is launch a new app to
change the colour of skins. So customer has attracted and they install the app and enjoy with the
features of app. This is created a positive impact on the company. L’oreal is provided their
product in online platforms but company face some issues related to the customer satisfaction.
Customer are not satisfied with the services and they cannot trust to buy the product by use the
online platforms. So that is created the negative impact on the company.

Legal factor
Legal factor is define the all laws that company must follow such as health and safety act,
consumer protection act. Positive impact L’oreal is followed the all rules regarding the products.
They follow the different laws of different government of country follow the consumer
protection law. So consumer are trust to product and easily buy the products of L’oreal. Negative
impact when L’oreal is not aware about their product so other company are easily copy to
company products so L’oreal is make sure that they patent and copy right there products.
Environmental factor
Environmental factor is describe the ecological and environmental aspect that protect the
environment. Positive impact L’oreal is take some initiatives to make better environment. They
follow the government rules related to environment. Negative impact L’oreal has use the
chemical in their product that affect the human body. So customer is hesitated to purchase the
product (Baker, and Saren, 2016).
Task 2
Comparison of Digital Presence and Store presence of L'oreal.
Traditional Market Store Digital Market Store
1. L'oreal has been establish its strong brand by
Building 36 product brands in 150 countries
and reaching market segments in different
countries and has its stores all over the world.
2. Through its departmental stores L'oreal is
able to attract all the types of customers for its
products.
3. L'oreal can not convey direct message to the
desired target group of people in its stores
presence.
4. In stores presence, the message is being
pushed to consumers regarding the L'oreal
brand.
5. L'oreal requires a large investment to obtain
1. L'oreal has been able to reach everywhere in
the world through its online market platform
and E- Commerce sites. There are many
platform that has been used by the digital store
which are social media, search engines, online
videos, E-mails, online display.
2. L'oreal is able to reach only specific group
of customers who uses the internet.
3. L'oreal gains advantage of using the
available analytical data of different consumer
and target them accordingly as per their
requirements and lifestyle.
4. Here engagement is achieved through
targeting and interacting with consumers on

the desired impressions of its brand image in
the eyes of people.
6. Stores shopping can make customers touch
and identify various premium products of
L'oreal.
7. L'oreal's most of the revenue is being earned
from the different departmental stores and
traditional selling methods.
8. L'oreal faces less competition as there is
unique department store of the company
comprising its brand name to consumers in
order to attract them.
9. Traditional life cycle of purchasing is
lengthy and taking much time to buy the
product.
10 Store presence has limited marketing efforts
they put on to engage marketing efforts.
11. Store presence has limited consumption in
a day as compare to digital presence.
internet and online platform.
5. Very less amount of investment is required
to built an E-commerce sites or list the
products on online platform. Besides, digital
stores are more flexible and revenue generation
way for the company.
6. L'oreal E-commerce websites saves the time
of customers and make them choose different
varieties of products and buying them in short
time.
7. The company focusses more with the
digitalisation of its products in various market
as due to the growing trend of online shopping
and internet users.
8. L'oreal has to face more competition as the
online platform consists varieties of
competitors substitute products and create
option for consumers.
9. Comparatively digital store is more easier to
access or control on buying process. Where the
customer can buy a product in some few
seconds at their own place.
10. Digital presence involves different medium
which helpful to make the highest work
outcomes.
11. Digital presence provides a platform to deal
with the highly presentable and growing.
The company has earned 26.9 billion euros of sales in 2018 resulting in 4.92 euros in
operating profit of the organization. As according to the digital ups killing plan of L'oreal, the
company has trained 22,000 employees in digital technologies and marketing in order to acquire

its strong position on the basis of digital market world. L'oreal has 1.2 Billion of visitors on its
websites and also consists of 350 million of followers on their social networks and sites. All
these have resulted L'oreal to achieve 3 billion of euros through sales in e-commerce . Its e-
commerce sales comprises of 11% of the total sales volume of the country and adding up with
40.6% sales growth through its e-commerce platform in 2018(Järvinen and Taiminen, 2016).
L'oreal is the number one cosmetics group worldwide with its wide area network in 150
countries in 5 continents. Each of its products are available at department stores, retail outlets,
pharmacies, salons, cosmetic stores etc. A variety of L'oreal products are been displayed in these
stores with attractive and stylish interiors so as to attract different customers. These stores turn
out to earn about 21.98 billion euros of sales revenue of the company. Hence it is noted that
almost 72% of the sales revenue is being earned from the sales of departmental stores and other
stores of L'oreal. The company is being dependent on the traditional selling methods more as of
its digital market and e- commerce websites.
Apart from comparison between the stores presence and digitalisation methods being adopted by
the company it is seen that due to growing trend of online shopping and increasing number of
internet users, L'oreal is focussing more on its online business through its websites and
connecting as well as interacting with customers individually through different social media and
consumer reviews on their websites(Hansen and Sia, 2015).
Task 3
Business Plan
In order to launch its luxurious products such as Kiehl’s, Lancôme, Yves Saint Laurent, Ralph
Lauren, Giorgio Armani, Diesel, Clarisonic and the active products such as Vichy, La Roche-
Posay. Sanoflore, L'oreal is initiating a business plan to initiate these products on online
platform.
Mission- L'oreal has set the mission of creating over one billion of consumers around the
world by creating the cosmetic products that meet heir beauty needs and desires.

Vision- L'oreal has a vision of offering all women and men worldwide the best cosmetics in
terms of quality, efficacy and safety through meeting the infinite diversity of beauty needs and
desires all over the world.
Values- L'oreal focusses on values and principles that are Integrity, Respect, Courage and
Transparency.
Integrity because acting with integrity is vital to building and maintaining trust and good
relationships overall.
Respect because what company does has an impact on people's lives.
Courage because ethical questions are rarely easy but must be addressed.
Transparency because the company must always be truthful, sincere and be able to justify its
actions and decisions.
STP
Segmentation- In order to identify and analyse the ideal segment, L'oreal will specify the
geographic, demographic and psychographic characters of the target market.
Geographic Urban cities in developed economies
Demographic Age- 16-24 and 25-50
Psychographic Middle class, upper middle class and High class consumers.
Active products of cosmetics to middle and upper middle class and
Luxury cosmetic products for upper middle and High class consumers.
Target
Primary Target Secondary target
Primary target would be the competitors
customers. For instance, A 25 years old lady
uses various cosmetic products according to
the different fashion trends, gets a sight
towards L'oreal products on the social media
Secondary target would be the new customers
creation. For instance a 18 year old girl
watches her group of friends in college
discussing and using L'oreal products and
sharing their pictures on social media. Hence

and hence try to take a look and use those
products once.
the girl will also get attracted to use or check
out these products online and accordingly try
out sample.
Positioning
L'oreal will position its product I a unique way. As after delivering a product to the consumer, it
will issue a note that will include beauty tips and different styles of making yourself look more
attractive and beautiful and convey some special message too. This will make the L'oreal brand a
unique one out of this features.
Objectives-
Corporate- To reach a 20% market share over internet by the end of 2019.
Marketing- To sell 50000 active cosmetic products and 20000 Luxury products by the end of
2020.
The Marketing Mix
Marketing mix consists of 4ps of marketing comprising of Product, Price, Place and
Promotion.
Product- L'oreal has a wide portfolio of brands under them. The company produce the products
related to beauty and cosmetics under four divisions named as- Luxury cosmetics products that
include Kiehl’s, Lancôme, Yves Saint Laurent, Ralph Lauren, Giorgio Armani, Diesel,
Clarisonic etc. Consumer products division that includes L'Oréal Paris, Garnier, Maybelline New
York and Shampoo. Active Cosmetics division that includes Vichy, La Roche-Posay. Sanoflore
and lastly the Professional products such as L'Oréal Professionnel Paris, Kerastase, Matrix etc.
And body shop products that include eye-liner, mascara, eye shadow, nail polish , lipstick and
many more. These variety and categories of products make L'oreal a trending and fashionable
leading brand in the world.

Price- Prices are being made on the basis of type of category of product that consumer purchase.
There are high and premium prices for the luxury items and economical prices for the active
cosmetics products. This will lead to division of pricing in both he categories and accordingly
company can earn profits as well(Crittenden and Crittenden, 2015).
Place – The business plan consists of digital market and e- commerce websites, thus the place
strategy would be to acquire all the areas of its operation through internet and accordingly satisfy
the customers by delivering products to them. Primarily L'oreal has expanded its business in 150
countries and in 5 continents making it create a strong market segment worldwide.
Promotion- Promotional activities will be done through L'oreal primary concept of advertising
by including the different celebrities as brand ambassador and releasing the video on social
media platforms as well. This will promote the brand of the company as due to significant use of
social media by today's generation of people. Also the company is concerned with various social
welfare activities such as Child safety and health and safe environment, its program of
“YOUNG WOMEN IN SCIENCE” in partnership with UNESCO to help young women to
achieve dreams and aspirations of pursuing careers in science. All these activities will be served
as a promotion mix strategy of L'oreal company(Çizmeci and Ercan 2015).
Budget
Contents Amount (£)
Website set up cost 5000
Promotional activities 2000
Packaging charges 500
Transport and other conveyance 500
Total 8000
Monitor and Control
L'oreal will Monitor and control the activities of the business plan by observing Balance
Scorecard of the company mentioned below -

Objectives Measurements Targets Initiatives
Financial Perspective
1.Increase growth
2. Increase growth
1. Market Share
2. Revenue
1. Reach 20% market
share.
2. Sell total of 75000
products of L'oreal.
1. Steal competitors
customers.
2. Create brand
awareness and
preference by intense
marketing.
Corporate Perspective
1. Create Brand
preference.
2. Create brand
preference.
1. Customer repeat
purchase.
2. Customer
satisfaction.
1. 40% by the end of
2020.
2. 80% by the end of
2021.
1. Discount vouchers
on first purchase.
2. Viral marketing
campaign.
Measurements of digital campaigns using KPIs, Measurable metrics and use of analytics
platforms.
KPI for measuring Digital Marketing
Key performance indicators for digital marketing represents measurable values which
gives an indication of campaign performance, conducted by marketing teams. In order measure
the performance of digital transformation there are given some advanced techniques to measure
the authenticated working gain opportunity.
Sales Growth : To measure the effectiveness of the technology this is the best way to
evaluate the performance of any technique implemented in the business organisation. By
measuring the annual or monthly sales through digital platform can help to evaluate the L'oreal
growth.
Cost per lead Generated : In order to evaluate the total sales generated from the digital
platform cost per lead techniques is also beneficial. Every single marketer should monitor this
lead generation KPI. Cost per lead shows the cost of acquiring new prospect.

Cost per conversion : this kind of KPI express how much did it cost to acquire a lead
that also converted to paying customer. While an advertising campaign can generate hundreds of
leads for you.
Retention Rate : To measure the use or effectiveness of digital technology L'oreal can
also use the performance indicator retention rate which shows how many clients keep using
product over extended time period and make repeat purchases. Through this efforts company can
easily identified the actual retention rate of customers to evaluate the profit ratios.
Task 4
Methods used to evaluate the effectiveness of the above plan to the business.
On the basis of the above planned activities of conducting digital platform for L'oral,
certain steps will be used to monitor the effectiveness of these activities in relation to company's
growth.
Step.1 Evaluating the digital marketing goals- The first step in any marketing strategy is to
examine the primary goals set up in the plan. These activities can include-
 The number of Social Shares the company's posts receive.
 The number for subscribers and followers on social networking websites.
Number of positive reviews being posted by the customers after availing service.
 Number of Inbound website visitors from social networks.
 Total number of conversations resulting from social traffic.
All these activities are to be examined by L'oreal in order to check the effectiveness of
the plan.
Step 2. Re-examine the target customer profiles.
The targeted demographic group of people in the above business plan must be monitored
as through their feedback and satisfied reviews. This will clearly get an idea to L'oreal regarding
the success of their plan. Also it will help the company to know its areas of improvement and
changes need to be done in product manufacturing. All these activities will result in primary
goals of the plan and lead to success of L'oreal company(Baltes, 2015).
Step 3. Take a look over the company's participation and presence on digital platform

This includes L'oreal timely activeness in replying the consumer feedbacks, replying to
their messages and comments on the company's posts and also replying to their reviews. This
will also help the L'oreal built an better image in responding the customers and also provide the
timely updates to the company regarding the activities of the plan.
Step 4. Evaluate the messaging strategies of the company.
L'oreal must consider its specific type of messages that are sent to the customers. It may
be evaluation of the following-
 Type of messages such as text-based status updates, Blog posts, videos, podcasts etc. the
company must identify and evaluate which type of message is grabbing the consumer's
attention.
 Check the implications of words which are being used to send messages to consumers
whether these words are effective or not.
 Check the intensity of the marketing materials of the company being shared by the
consumers.
If the message is in line of the customer's expectations, the company will pose a high levels of
customer engagement with its brand of products and resulting to high number of social shares of
the company's content and meeting out targets of the firm. If it misses out the above reactions,
there is an indication of mismatch of company's message with the customer's interest.
Step 5. Checking Return on investment for the plan.
The last thing L'oreal has to do is to measure the digital platform performance with the
overall Return on Investment by the company. It will be difficult to calculate the exact returns
but a rough estimate can be judged by the company by tracking these two different variables.
 The amount being invested initially in this digital based platform (including financial
investments and time expenditure)
 The financial benefits of any conversions that company is tracking.
Here the company has invested £8000 in this business strategy, so the number of sales revenue
being earned and what is the proportion of this revenue and how much time it takes to recover
these investment has to be monitored and observed. This will provide L'oreal an exact idea of
total return on investment in this business strategy and accordingly can give an vision regarding
the success of the plan and if not, then the remedies to overcome these complications
further(Baker and Saren,2016).

Hence these methods contains all those factors that are necessary to evaluate, measure
and monitor the effectiveness of L'oreal digital marketing strategy as this will let the company
know the progress rate and success of this strategy.
Conclusion
From the above study it is observed that different opportunities and threats and how
environmental factors affect the digital market and he online business of the firms and how the
company deals with those factors to overcome its growth in the business. It is also observed how
the traditional stores presence and digital presence of the company differentiate with each other
in terms of profits and sales revenue and growth. The report also includes the marketing plan for
the company to set up its online business platform which includes various techniques and
strategies to be implemented by the company. The report concluded by the different evaluation
methods to measure and monitor the effectiveness of the business plan and its activities.

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